among those 2.45 percent of international payments carried out in RMB, 70 percent are transactions done in Hong Kong… the internationalization of the RMB that makes the currency fulfil the IMF technical requirements is mostly about the RMB-ization of the Hong Kong economy so far. It involves the increase of RMB deposits in Hong Kong banks, sales of RMB-denominated “dim sum bonds” in Hong Kong, and the “through train” Hong Kong-Shanghai stock arrangement, etc.. The increasing use of RMB in Hong Kong has been carefully managed by Beijing under a quota regime. As such, RMB’s “free usability” in the world is in large part attributable to its “free usability” in Hong Kong, and China’s opening of capital account to the world is mostly its controlled opening to Hong Kong. The “free usability” of the RMB is way different from the “free usability” of the existing currencies in the SDR basket. RMB remains not fully convertible, and China’s capital account remains quite impermeable.

Despite China’s stock market tumult this year, mainland banks and asset managers are crowding into Central in hopes of drumming up new business with foreign clients. The moves are further cementing Hong Kong’s status as the prime gateway into and out of China, property experts and bank analysts say.